Finance Act, 1979

Relief for certain expenditure on residential premises.

7.—(1) Subject to the provisions of the Second Schedule, where an individual, having made a claim in that behalf, and having made a return in the prescribed form of his total income, proves that he incurred expenditure in respect of the labour cost of qualifying work carried out by a registered person in the qualifying period on a residence of the individual, he shall be entitled, for the purpose of ascertaining the amount of the income on which he is to be charged to income tax for the year 1979-80, to have a deduction made from his total income of the amount by which the aggregate of the expenditure in respect of the labour cost of qualifying work carried out in the qualifying period exceeds £50 :

Provided that no such deduction shall exceed £450.

(2) For the purposes of this section—

(a) qualifying work carried out by an employee of a registered person on behalf of the said registered person shall be deemed to be carried out by the registered person,

(b) section 193 of the Income Tax Act, 1967 , shall apply as if the following paragraph were inserted after paragraph (bb) in subsection (2)—

“(bbb) so far as it flows from relief under section 7 of the Finance Act, 1979, in the proportions in which they incurred the expenditure giving rise to the relief,”, and

(c) expenditure shall not be regarded as having been incurred in so far as any sum in respect of, or by reference to, the qualifying work to which it relates has been or is to be received directly or indirectly by the individual from the State, from any public or local authority, from any other person or under any contract of insurance or by way of compensation or otherwise and, where any such sum is so received or is to be received, the labour cost of the qualifying work concerned shall be deemed, for the purposes of this section, to have been reduced by such sum as bears to the first-mentioned sum the same proportion as the labour cost bears to the total expenditure on the qualifying work.

(3) No deduction shall be allowed under this section for expenditure in respect of which a deduction may be claimed under any other provision of the Tax Acts.

(4) The Second Schedule shall have effect for the purpose of supplementing this section.